Earlier today the NAIC Restructuring Mechanisms (E) Working Group of the Financial Condition (E) Committee issued its draft NAIC White Paper on insurance company restructurings, namely Insurance Business Transfers (IBT) and Corporate Divisions. Comments may be submitted by November 22.
This White Paper is long-awaited and serves as the first step in the NAIC’s study of these restructuring mechanisms with the objective of creating a framework for regulators to study and hopefully implement appropriate regulatory standards. Although a few transactions have already taken place — the Enstar and R&Q IBT transactions in Oklahoma and the AllState Division under Illinois law, the market and regulators are still studying the results and the NAIC is still formulating its advice.
The Working Group will continue its studies which will include taking advice from other NAIC working groups on accounting and other regulatory issues.
A more detailed discussion of the White Paper will follow in coming days.